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Just Released: "Israel Freight Transport Report Q4 2013"

Fast Market Research recommends "Israel Freight Transport Report Q4 2013" from Business Monitor International, now available

Boston, MA -- (SBWIRE) -- 11/15/2013 -- We forecast fairly modest growth in Israel's freight transport sector in 2013, though this will be an improvement for air and rail freight volumes, both of which have suffered declines over the past two years. Political risk from the civil war in Syria and escalating sectarian tensions in Lebanon could all weigh on the Israeli economy and its freight transport sector (though this also presents transit opportunities). Equally, the sluggish growth of its key trade partners in the West could also hamper volumes. The country is looking towards the future, however, and is committed to developing its ports.

Headline Industry Data

- 2013 air freight growth is forecast at 1.2%; we project average growth of 1.6% per annum to 2017.
- 2013 Port of Haifa tonnage throughput growth is forecast at 6.9%, following growth of 6.2% in 2012, and to average 3.3% per annum to 2017.
- 2013 rail freight tonnage is forecast to grow by 1.3%, following an estimated decline of 3.0% in 2012, and to average 1.7% to 2017.
- Total trade growth in real terms in 2013 is forecast to grow 1.6% and average 2.3% to 2017.

War Reveals Unexpected Opportunities: As the civil war in Syria continues, looking likelier by the day to result in foreign intervention of some degree or other, so trade routes in the Middle East remain disrupted. The Lebanese port of Beirut is the most obvious beneficiary, but a less obvious one has been Israel, where increasing ro-ro shipments from Turkey are passing through en route to Jordan and the Gulf states.

Privatisation Moves Forward: In July 2013 we wrote that the threat of downside risk to our container throughput forecasts for the Israeli ports of Haifa and Ashdod appeared to have abated, with the Histadrut labour federation, which is present in both facilities and are against the planned privatisation of these port's container terminals, unlikely to call a strike in protest against the planned privatisation, as such a move would be reportedly be opposed by 83% of Israelis. BMI highlights that planned privatisations, and with them investment in the nation's ports, are essential if Israel is to remain on the rotations of major shipping services.

Valmer To End Israeli Service: Maltese shipping company Valmer Lines Shipping announced in August that it will end its service to Israel. The company attributed the decision to a combination of factors, including the industrial unrest caused by the Israeli government's decision to build two new container terminals and the low level of freight rates.

Key Risks To Outlook

Israel's drive to develop its port sector through establishing private facilities offers the greatest risk to our outlook at present given the high likelihood that the existing ports of Haifa and Ashdod could stage strikes in protest against the move.

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